No time like the present - five reasons to buy a new build home now
With interest rates at their lowest in years, making it cheaper to borrow and easier to move up the property ladder, 2015 is shaping up to be a great year for new homes buyers. Whathouse.com has been promoting the benefits of new build homes for years and this has been backed up by a report just out from housebuilders Barratt in Bristol.
“We’ve seen a large rise in demand for new homes, signifying that more people, from first-time buyers to upsizers, are not only more confident about making a move, they’ve been able to secure the necessary finances ,” says Andreas Pilgrim, sales director at Barratt Homes.
Here we share our top five reasons to go for it now:
The Autumn Statement last year introduced major changes to how stamp duty is calculated and brought an end to the old “cliff edge” land tax system. Under the old system, once the value of the home had hit a certain threshold, the purchaser would pay a higher tax on the full value of the property and not just on the portion above the threshold limit. The new system is fairer and more proportionate as purchasers only pay the higher rate of tax on the amount above the limit and not on the full value of the property as before.
The availability of long term fixed rate lending packages, coupled with falling interest rates and increased competition, is reducing the cost of borrowing for many homebuyers. First-time buyers may be able to access rates as low as 2.19% for two years with a 15% deposit. For example, Chelsea Building Society is offering a two-year mortgage fixed at 1.99% until 31st July 2017. Other lenders are offering fixed rate products for 10 years for as little as 4.29% with a 15% deposit. This allows customers to make the most of low rates for a much longer period of time.
3.Help to Buy
There are government schemes aimed at helping buyers with smaller deposits to buy a property. Through Help to Buy, buyers with a deposit of just 5% can purchase a property and it is available to both first-time buyers and existing homeowners. These schemes will help stimulate the housebuying industry and allow buyers to take advantage of favourable interest rates with mortgages of less than 75% of the property value.
Whether a buyer is better off with an ordinary mortgage, or using one of the government backed schemes, will depend on their individual circumstances. However an advisor will be able take them through the options and help the buyer secure the best deal. Due to ongoing reforms within the financial services industry, the process for obtaining finance has become more complex. However this should not put off those looking to apply for a mortgage as many house builders provide free independent financial advice to their customers.
The increased confidence in the market has stimulated the building sector which has in turn led to increased development activity. Many housebuilders are announcing their plans to launch new sites this year which will bring increased choice for buyers as well as new jobs to the local industry. This brings many benefits for buyers as it allows them to choose their own plot, type of house and fixtures and fittings depending on the individual house.
Below we take a look at some of the new developments coming on the market with Barratt in the Bristol area:
Hanham Hall – The original Hanham Hall is a Grade II listed building which will be transformed as the centre piece of this development. There is a mix of one- to five-bedroom homes set in 12 acres of beautiful open space which includes an orchard, communal outdoor area and allotments. Among the final homes available are the five-bedroom ‘Savannah’ priced at 425,995. Help to Buy is available.
Lyde Green is a new development located in Emerson Green, on the outskirts of Bristol. Two- to four-bedroom homes are available and show homes are now open to view. It will form part of the new Lyde Green village which will include a primary and secondary school, leisure facilities and a local community centre. Key features include traditional looking exteriors with modern and airy interiors and a flexible layout design. All properties currently reserved but more due for summer release.
Colliers Court - Just three miles from the city centre, Colliers Court in Speedwell is a new development of 80 two-, three- and four-bedroom houses with easy access to local amenities and commuter links. The M32, linking the M4, is about five miles away which offers easy access to Swindon and the M5. Help to Buy is available. All properties currently reserved but more due for summer release.
Autumn Brook is a development of two, three and four-bedroom energy-efficient houses from £282,995 which will form part of the North Yate new neighbourhood scheme and will eventually include a local centre and up to two primary schools. It is just over 11 miles from Bristol city, a mile from Yate Shopping Centre and offers the very latest in home design. Three- and four-bedroom homes are due for release in next couple of months and Help to Buy is available.
For further details of these homes, contact Barratt on 0844 5710 385 or log onto www.barratthomes.co.uk.